Question 137 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 137 Chapter 4 of +2-B

Question 137 Chapter 4 of +2-B

Miscellaneous

137. From the following information, calculate any two of the following ratios:
(i) Current Ratio;
(ii) Debt to Equity Ratio; and
(iii) Operating Ratio.
Revenue from Operations Net Sales Rs 1,00,000; cost of Revenue from Operations Cost of Goods Sold was 80% of sales; Equity Share Capital Rs 7,00,000; General Reserve 3.

 

The solution of Question 137 Chapter 4 of +2-B: –

I

Current Assets = Quick Assets + Closing Stock + Prepaid Expenses
  = Rs 6,00000 + Rs 50,000 + Rs 10,000
  = Rs. 6,60,000

 

Current Ratio = Current Assets
Current Liabilities
Current Ratio = Rs. 6,60,000
Rs. 4,00,000
  = 1.65 : 1

 

II

 

Long-term Debts = Rs 5,00,000
Shareholder’s Funds = Equity Share Capital + General Reserve
  = Rs 7,00,000 − Rs 3,00,000
  = Rs 10,00,000
Average Inventory = Long-term Debts
Equity
  = Rs 5,00,000
Rs 10,00,000
  = 0.5 : 1

III

Sales = Rs 1,00,000
Cost of Goods Sold = Rs 80,000
Operating Expenses = Rs 10,000
  = Cost of Goods Sold + Operating Expenses
  = Rs 80,000 + Rs 10,000
  = Rs 90,000
Operating Ratio = Operating Cost X 100
Net Sales
Operating Ratio = Rs 90,000 X 100
Rs 1,00,000
  = 90%    



 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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T.S. Grewal’s Analysis of Financial Statements

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